It's the American dream - home
ownership. Whether your first house or your fifth, buying a
home can be a daunting experience. The good news is, it
doesn't have to be that way. Below are seven (7)
helpful steps to help you overcome apprehension toward buying
a home.

1. Determine
your Home Buying Budget
Before you set out on your journey to find your dream home, do a
reality check. What can you comfortably afford to spend on
your home? Start with your monthly take home pay then
subtract out your monthly living expenses (utilities, cable,
telephone, etc.) and your fixed monthly payments like your car loan
or credit card payments. This will give you a good feel for
an affordable monthly payment amount before you start talking to
mortgage lenders. Our calculators will help you decide how the
monthly payment translates into a mortgage loan amount.

2. Pre-qualify
for a Loan
By getting pre-qualified for your mortgage you will have a better
picture of how much home you can qualify for and that will help you
focus your house hunting. Being pre-qualified can also
demonstrate to a seller that you're serious and ready to buy.
Your final mortgage application will go faster since you've already
provided much of your information.

To pre-qualify most lenders will need:

General idea of the type of home and approximate price

Type of loan you want

How much down payment you plan to make

Personal information (name, phone number, address, date of
birth)

Employment history

Social Security number

Financial information (monthly income, current debts,
assets)

3. Choosing a
Real Estate Agent
Even for a seasoned home buyer, the home buying process is made
much easier when you choose to work with a professional agent.
Despite how many tips on buying a home anyone could share with you,
nothing can take the place of professional, one-on-one
guidance.

4. Review Your Credit
Review both your credit report and your credit score. Should
you find areas on your credit report which need to be corrected, do
that now. It takes time. You don't want to be in the
middle of the loan approval process and then discover a problem
that shouldn't be there. Naturally, the better your report
and the higher your credit score, the easier the mortgage approval
process will be.

5. Understand Your Mortgage
Options
Learn about the various types of mortgage loans. By understanding
the different home loan options available to you, you'll be better
able to choose the right one.

6. Getting a Home
Inspection
A lot of home buyers ask the question, "Do I really need a home
inspection?" The answer is yes, you should always have a home
inspection prior to purchasing, especially if you're a first-time
buyer.

7. Preparing for
Settlement
The settlement (or closing) process is the final step in the
overall home-buying process. It's when you sign all of the final
documents, settle things financially, and get the keys to your new
house. Be sure to read everything, and if you have any
questions, just ask.